Blockchain investigator ZachXBT has brought renewed scrutiny to former FTX CEO Sam Bankman-Fried (SBF) over an alleged $40 million transfer to Chinese authorities. This revelation has raised new questions about hidden payments and possible bribery during FTX’s operational crisis.
Origin of $40 Million Transfer Discovery by ZachXBT
According to on-chain analysis and public posts by ZachXBT, the $40 million payment took place “in or around November 2021,” during a period marked by intense legal and operational challenges for FTX and Alameda Research.
The transfer could be intended to persuade Chinese officials to unlock accounts tied to Alameda Research, which were frozen amid investigations into FTX-linked operations and fund flows.
Further, investigative threads claim that the funds travelled via many intermediary addresses before reaching a wallet directly associated with Chinese law enforcement and regulatory authorities.
ZachXBT, which is well-known for exposing illegal activities in the cryptocurrency space, claims that the transfer details were deliberately concealed from the public and stakeholders, prompting claims of foreign government interference and bribes.
Industry Response
The dispute has rekindled discussion over SBF’s actions and openness in the last few months of FTX’s existence. According to earlier court documents, the $40 million payment was part of an effort to recover more than $1 billion in frozen Alameda assets. ZachXBT’s inquiry increases pressure for regulatory action and more legal disclosure, even as SBF is still facing criminal procedures in the US.
This latest episode highlights the challenges and risks of managing large cryptocurrency networks with a worldwide reach. Moreover, it demonstrates how independent on-chain investigators like ZachXBT can influence legal and regulatory processes by leveraging blockchain transparency to uncover transactions that might otherwise be forgotten.
The crypto community expects that as the investigation develops, law enforcement, regulators, and other stakeholders will provide additional details and analysis. Strong governance, transparency, and compliance protocols are crucial in light of shifting global regulatory landscapes, as the case highlights.
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